A proper engine rebuild (done by you, but machine work done at the machine shop) runs about 2k in this part of the country. I have heard prices much higher. You CAN go to 80 thousands over, but 60 is really as far as I would take it. For the 2k, the machine shop will take care of surfacing the head, changing out the valve guides, valves, etc, clean, bore the block, install the cam bearings, and provide you with a gasket set, cam, lifters, push rods if needed, etc.
I am doing a writeup on this now at:
http://devestechnet.com/Home/Project1959235 in detail. You don't have to be this thorough of course, but you can decide what shortcuts you want to do. I am still waiting on the machine shop, so its not finished yet.
Find yourself a good machine shop locally. Talk to the owner, get to know his ability just by talking to him. You will know if you have come to the right place.
